The biochar market was valued at US$1,043.189 million in 2019 and is expected to grow at a CAGR of 8.92% over the forecast period to reach a total market size of US$1,897.214 million by 2026.
Agricultural waste, wood waste, forest wastes, and animal manure can be turned into biochar by heating them according to a set temperature. The main use for the product is as a soil amendment to eliminate pollutants. It prevents soil leaching, water loss, and fertilizer runoff. A growing awareness of environmental issues, a reduction in raw material prices, and government policies for waste management are expected to expand the market. In addition to the need for high-quality organic crops to be grown, other key drivers for market growth are continuous improvements in farming practices. More than 3.1 million farmers practice organic agriculture in 187 countries. Furthermore, 72.3 million hectares of agricultural land were developed through organic farming. More than 106 billion euros was spent on organic food and drinks in the EU in 2019. The total land area under organic farming continues to grow in the EU, covering almost 13.8 million hectares in 2019. Therefore, the growth of organic farming is ultimately booming the market for biochar (Source: europa.eu; fao.org).
Biochar consumption in agricultural applications is largely driven by livestock farming. Various livestock farming activities, including poultry farming, cattle farming, and meat production, have increased their consumption since the product provides essential nutrients and maintains the health of livestock. In 2018, 2.8 million organic farmers produced organic food. India still boasts the most producers (1149,000), then Uganda (2109,000), and Ethiopia (204,000). (Source: fao.org). There will be a huge opportunity for organic farming in the coming years as government support grows, thus, growing the market for biochar.
Since Biochar can boost soil fertility and improve soil properties, it has gradually gained use in developing countries, so that crops can grow better with fewer emissions and greater strength. Because biochar balances acidic soil towards neutrality, agricultural crops and plants are able to benefit from reduced nutrient loss from the root zone and reduced fertilizer requirements. In developing countries, biochar can significantly reduce greenhouse gas emissions like nitrous oxide and methane, for that reason, the government encourages farmers to use it.
In 2016, the US Department of Agriculture (USDA) - National Agricultural Statistics Service (NASS) reported that certified organic commodities were produced and sold on American farms in the amount of US$ 7.6 billion. Additionally, the Certified Organic Survey 2016 shows that organic farm sales in the U.S. increased by 23 percent in 2016. International Biochar Initiative (IBI) reports that China, in terms of chemical fertilizer production, consumption, and imports, is the largest country in the world. According to an article published at the China National Research and Development Center, biochar can improve soil cation exchange capacity (CEC), which means the soil requires fewer chemical fertilizers. Therefore, as organic farming grows, the market for biochar is growing at a rapid rate.
The major issues when applying biochar to the earth are soil erosion and contamination. These two factors can hinder the growth of the market. A high price of biochar and its feedstock restrains market growth, as do a lack of financial incentives and tax breaks, lack of demonstration projects, and contamination of biochar.
Throughout 2020, the unprecedented COVID-19 pandemic – and the impact it has had on everyday lives – will have dramatic consequences for the organic industry. Organic food is becoming the food of choice for consumers who are seeking healthy, clean foods for their families at home. Biochar has a steady growth market due to organic farming directly affecting the market, so as people become more concerned with the quality of organic foods during the COVID-19 pandemic, their concerns influence the market for biochar.
|Market size value in 2019||US$1,043.189 million|
|Market size value in 2026||US$1,897.214 million|
|Growth Rate||CAGR of 8.92% from 2019 to 2026|
|Forecast Unit (Value)||USD Million|
|Segments covered||Production Technology, Feedstock, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Airex Energie Inc., SynTech Bioenergy LLC, BioFire SIA LATVIA, Cool Planet, Tolero Energy LLC, Vega Biofuels|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the biochar market size by 2026?
A1. The global biochar market is expected to reach a total market size of US$1,897.214 million in 2026.
Q2. What is the size of the global biochar market?
A2. Biochar Market was valued at US$1,043.189 million in 2019.
Q3. What are the growth prospects for the biochar market?
A3. The biochar market is expected to grow at a CAGR of 8.92% during the forecast period.
Q4. What factors are anticipated to drive the biochar market growth?
A4. A growing awareness of environmental issues, a reduction in raw material prices, and government policies for waste management are expected to expand the biochar market.
Q5. How is the global biochar market segmented?
A5. The biochar market has been segmented by production technology, feedstock, application, and geography.
Airex Energie Inc.
SynTech Bioenergy LLC
BioFire SIA LATVIA
Tolero Energy LLC
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